Finance, Taxes, Insurance
Great Wealth Transfer Could Reshape Air Charter Demand
Younger high-net-worth individuals may shift to charter, avoid capital gains tax burden
Richard Koe, managing director of WingX by JetNet, left, speaks with UBS Global Wealth Management chief economist Paul Donovan about global trends set to shape bizav in the coming years
Richard Koe, managing director of WingX by JetNet (left), speaks with UBS Global Wealth Management chief economist Paul Donovan about global trends set to shape business aviation in the coming years. © JIQ Fireside Chat webinar screenshot

An $84 trillion generational transfer of wealth, already underway, could push future aircraft buyers toward leasing rather than ownership, largely because of how capital gains taxes apply to owned assets, according to UBS Global Wealth Management chief economist Paul Donovan.

“Do you want to own assets like that, which might be subject to capital gains tax, or do you want to perhaps consider leasing them where capital gains tax does not apply and it comes out of income?” Donovan said today during a JIQ Fireside Chat webinar hosted by Richard Koe, managing director of WingX by JetNet. “All these sorts of questions will start to come in more and more.”

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